Alameda Real Estate Snapshot - March 2022

We created the Alameda real estate market snapshot to keep you informed and put the latest real estate market data at your fingertips. Our goal is to help you make the best decision for yourself and your loved ones. Here’s our latest analysis:

March vs. February

There were about 44% fewer total closed sales in March than in February (9 versus 16). A continued drop from January’s much larger total sales of 23 closed properties. What’s going on?

Local Market News

On the positive side, unemployment across the US has fallen to 3.6% and here in the Bay Area, unemployment is just 2.9%. With all the jobs, and money percolating around in the economy, there is still a lot of confidence in the local housing market. Housing inventory continued to be sparse and closed prices decreased about 1.7% for homes in Alameda with a median sold price of $1,450,000 (about $25,000 less than Feb), however, closed prices told a different story for condos and townhouses. Their sales price rose just shy of 6% with a median sold price of $925,000 versus $875,444, a difference of almost $50,000. Again, the market appears to be holding up well, in spite of all the potential challenges it faces for now.

Challenges

The Russian invasion of Ukraine moved into its second month and has caused heartfelt anguish, widely felt political turmoil, and has also caused gas prices to skyrocket. Layer on top of this inflation which hit 8.5%, which hasn’t been this high since December 1981. In addition, interest rates began to move much higher, up a full point from February, but have yet to begin taking some of the shine off the housing market, in both the Bay Area and across the nation. Time will tell if buyers’ mood towards housing changes. Are people still buying? Yes. Although, it will get a bit harder to afford property because of higher interest rates.

Are people still selling? Yes. A bright spot is that the days on the market remained the same from last month to March. The median days on the market (DOM) for detached and duet homes was 11, with condos and townhomes selling within 10 days. Condo demand appears poised to hold up, especially as it remains a more affordable entry point into homeownership.

Expectations

April should begin to see more inventory coming on the market, giving buyers a bit more choice. Covid restrictions have all eased, even though there is a new variant that could cause issues in the future. Rents have really begun to take off which may end up helping the sales market. As always, people will weigh their options and do what’s best for themselves.

This year is going to be filled with uncertainty, but lately that seems to have become the norm. Demand here has remained strong and steady, yet we haven’t really felt the impact of higher interest rates. The lack of inventory will likely continue to be one of the main factors affecting buyers.

Next month: April

Check back again next month as we bring you the latest data and opinions that we’re seeing in real estate. Our goal is to stay on top of trends and data to help you make the best decision possible for you and your loved ones.

Got a question? Whether it’s about what your home may be worth or how you can buy your next home, just give me a shout.

Alameda Real Estate Snapshot - Feb 2022

New month - new stats

We created the Alameda real estate market snapshot to keep you informed and put the latest real estate market data at your fingertips. Our goal is to help you make the best decision for yourself and your loved ones. Here’s our latest analysis:

2022: February vs. January

As we look back, we see that there were about 30% fewer total closed sales in February than in January (16 versus 23). A continued drop from December’s much larger total sales of 56 closed properties. Does that mean anything or is it normal?

February is usually the peak of the “winter doldrums” before the spring market typically begins to rebound. Every year, sellers and buyers begin to reassess what they want out of life—some will take their profits and move on to greener pastures (sellers), while others (buyers) are ready to use the capital they have to put down new roots and create the life they want here in Alameda.

Although inventory continued to be tight, sold prices were down about 5% for homes with a median sold price of $1,475,000 and 9% for condos with a median sold price of $875,444. These are still very robust sales numbers. The mix of homes sold accounts for some of the discrepancies, but we’ll keep an eye on this metric and see if a pattern begins to emerge.

Also, the median days on the market (DOM) decreased from 13 to 11 days for detached and duet homes, but remained at a flat, yet very competitive 7 days from January to February for condos and townhomes. Condo demand appears to be remaining strong, quite a reversal from most of 2021.

Uncertainty abounds

February was a bit of a yo-yo from a news point of view. The war in Ukraine began in late February, just as many Covid Omicron restrictions began to ease, but then both gas and rents began to spike, along with higher inflation for most items. Add in talk of higher interest rates from the Federal Reserve and certain buyers may have begun to rethink buying altogether.

Even with all the uncertainty in the market, there will be buying and selling opportunities. There may be peaks and valleys throughout the year, but we think sales will remain steady. Interest rate increases and lack of inventory will probably be the main drivers.

Next month: March

Check back again next month as we bring you the latest data and opinions that we’re seeing in real estate. Our goal is to stay on top of trends and data to help you make the best decision possible for you and your loved ones.

If you have questions about what your home may be worth and want to know more, please contact us.

• This content was first published to the Resources page (aka, Blog) on Alameda Senior Transitions website.

Alameda Real Estate Snapshot - Jan 2022

New this month! We're introducing our Real Estate Snapshot for Alameda.

Should I stay or should I go? It's a question you may have been thinking about lately, especially with the large increase in home prices. If you’re looking for real estate data to help you make a decision, then you’ve found it. We think our real estate snapshot is a quick way to understand the Alameda real estate market.

We created this Alameda real estate market report to keep you informed and put the latest real estate market data at your fingertips, so you can make the best decision for you and your loved ones.

As we go forward we’ll offer our opinion, based on the data, as to what is happening in the Alameda real estate market. We hope you gain some insight from the data and find it useful.

January 2022 vs. December 2021

As a comparison, there were about slightly less than half as many total closed sales in January than in December (23 versus 56).

Was this due to the typical holiday sales decline, lack of inventory, higher prices, diminished buyer interest, or interest rates on the rise? Our thought is that it is mainly holiday driven, but interest rate rises may begin to sideline certain buyers as the combination of higher rates and increased purchase prices may lead them to consider other less expensive markets, such as nearby San Leandro.

Also, the median days on the market (DOM) remained the same (13) for detached and duet homes, but fell sharply from 24 days in December to 7 in January for condos and townhomes. Are condos the next hot market? We’ll see as the year progresses.

Next month

Check back next month as we bring the latest data and opinions that we’re seeing in real estate. Our goal is to stay on top of trends and data to help you make the best decision possible for you and your loved ones.

If you have questions about what your home may be worth and want to know more, please contact us.

• This content also appears on the Resources section (aka, Blog) of Alameda Senior Transitions.